07/10/2022
GST UPDATES:
1st October 2022 - is a Milestone in the history of GST Law.
Now the major amendments made vide the Finance Act, 2022 have come into force w.e.f. 1.10.2022.
CONCEPT OF “2 WAY COMMUNICATION” system introduced in GST Law for Return Filing is now dropped.
So, DISCRETION is now not available for Taxpayers to take Input Tax Credit ( ITC ) provisionally and then do matching and reversal of ITC. It is now “ONE WAY COMMUNICATION” system for taking ITC based on GSTR-2B, subject to the following 6 restrictions now made by amending Sec.38 of the GST Act.
1. Supplier’s GST RC is NOT under restriction period
2. Supplier has NOT defaulted in payment of his output GST
3. Supplier has NOT declared less tax in GSTR3B than GSTR-1
4. Supplier has NOT availed more ITC than is in his GSTR-2B
5. Supplier has NOT utilized more ITC than allowed u/s 49(12)
6. Supplier is NOT such a person as may be classified by Govt.
Hence, hereafter taking ITC is “SUPPLIER DEPENDANT” one. It is better to have ”KNOW YOUR SUPPLIER” exercise beforehand.
FROM 1.10.2022 onwards:
*Time limit for availing ITC of previous Financial Year invoices or debit notes is upto 30th November of the following Financial Year.
*Time limit for issuing credit note & rectification of outward supplies in GSTR1 in a Financial Year is upto 30th November of following Financial Year.
*Chronological monthly filing of GST returns is mandatory. (e.g.- October Return cannot be filed, if September Return is not filed).
DISCLAIMER: FOR INFORMATION ONLY. DISCRETION IS SOLICITED.
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